Christine Mai-Duc

A brother of slain American journalist James Foley said Friday the US government could have done more to help him escape the militant group Islamic State, also known as ISIS, which had demanded a $US132 million ($141 million) ransom before beheading him in a grisly video released this week.

"There's more that could have been done directly on Jim's behalf," said Michael Foley, 38, in an interview with Yahoo Global News anchor Katie Couric.

"I really, really hope that in some ways, Jim's death pushes us to take another look at our approach, our policy to terrorist and hostage negotiations, and rethink that."

It was no mistake Islamic State chose the potent image of the murder of a US citizen by a British jihadi.

This spring, the militants released four French and two Spanish journalists, reportedly for large ransoms.

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In an emotional interview at the family's home in New Hampshire, Foley and his sister, 26-year-old Katie Foley, spoke about the condolences and messages of support that have poured in since their brother's death, including a call from Pope Francis, who referred to James as a martyr.

In the months before Foley's death, his family and GlobalPost, which had hired him as a freelancer, had hoped to negotiate his release, raising funds for the ransom the militants demanded despite a government policy that bars negotiating with terrorists. But on August 12, they received another email, a message to the US government that threatened to execute the journalist in retaliation for US airstrikes in northern Iraq.

Steven Sotloff in the video released by Islamic State, is one of about 20 Western hostages held by the jihadists. Photo: Reuters

Michael Foley expressed his frustrations with the government's approach to dealing with American captives.

"You could accomplish both things. The United States could have done more on behalf of the Western and American hostages over there and still dealt with broader worldwide issues, and other nations have done that," he said, adding that the militants had also demanded the release of several prisoners held by US authorities.

"We are sitting on prisoners, for example, in Guantanamo. It doesn't even have to be financial," Foley said. "I just feel strongly that more can be done moving forward."

Foley also said he hopes the government will "take some action quickly" on behalf of Steven Sotloff, another captive American journalist whom the militants have threatened to kill next unless the US halts airstrikes against the Islamic State in northern Iraq.